Swedish truckmaker Scania and Germany's MAN, who both have links to the Volkswagen automotive group, are considering merging, Scania said in a statement Monday.

"For some time Scania and MAN have investigated different projects in the industrial area, mainly related to the commercial vehicles, which would make it possible for the two companies to profit from synergies in research and development, manufacturing and sourcing", Scania said.

Volkswagen owns 45.7 percent of Scania and nearly 30 percent of MAN. MAN also has a 13.4 percent staken in MAN.

"This process has shown that a full realisation of potential synergies requires a closer cooperation by combining the two companies, while maintaining the unique brand values of the respective company.

"At this stage no decision has been taken, as there are a number of outstanding issues of commercial and legal nature. A decision can be made only when these issues have been resolved".

Swedish truckmaker Scania posted a sharp rise in third-quarter net profit but sales fell short of expectations because of slow recovery in Europe from 2009, a disastrous year for the industry.

The truckmaking industry -- very sensitive to the health of the economy -- suffered immensely from the global economic slowdown but is recovering, with companies re-hiring laid off workers and picking up the production pace.

Shares in MAN jumped by more than five percent in early trading in Frankfurt to 86.98 euros while the DAX slid 0.45 percent overall to 6.704.16 at 0855 GMT.

Meanwhile, shares in Volkswagen slid 0.18 percent to 113.80 euros and in Stockholm shares in Scania dipped 0.60 percent to 145.20 kronor.